Bank of America Corp DE Sells 856,713 Shares of Semtech Corporation $SMTC

Key Points

• Bank of America cut its Semtech position by 42.8% in the first quarter, selling 856,713 shares and retaining 1.14 million shares worth approximately $87.9 million.
• Analysts remain broadly bullish, with Semtech carrying a “Moderate Buy” consensus rating and an average price target of $189.07; several firms recently raised targets to between $188 and $225.
• Semtech reported quarterly EPS of $0.51, beating estimates of $0.45, while revenue rose 15.9% year over year to $291.02 million. The stock opened at $139.42, up 3.4%, although insiders have sold 22,234 shares worth $3.2 million over the past 90 days.

Bank of America Corp DE lessened its position in shares of Semtech Corporation (NASDAQ:SMTC - Free Report) by 42.8% in the first quarter, according to its most recent filing with the SEC. The firm owned 1,143,314 shares of the semiconductor company's stock after selling 856,713 shares during the quarter. Bank of America Corp DE owned approximately 1.23% of Semtech worth $87,909,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of Semtech by 2.6% during the fourth quarter. Vanguard Group Inc. now owns 11,858,352 shares of the semiconductor company's stock worth $873,842,000 after buying an additional 298,987 shares during the period. Ameriprise Financial Inc. raised its stake in Semtech by 10.3% during the second quarter. Ameriprise Financial Inc. now owns 7,112,097 shares of the semiconductor company's stock worth $321,040,000 after buying an additional 666,456 shares during the last quarter. State Street Corp lifted its holdings in Semtech by 1.5% in the second quarter. State Street Corp now owns 4,037,107 shares of the semiconductor company's stock valued at $182,235,000 after buying an additional 60,788 shares during the period. Whale Rock Capital Management LLC lifted its holdings in Semtech by 11.3% in the fourth quarter. Whale Rock Capital Management LLC now owns 3,901,469 shares of the semiconductor company's stock valued at $287,499,000 after buying an additional 396,504 shares during the period. Finally, Alliancebernstein L.P. boosted its position in Semtech by 9.8% during the second quarter. Alliancebernstein L.P. now owns 3,318,384 shares of the semiconductor company's stock valued at $149,792,000 after acquiring an additional 294,990 shares during the last quarter.

Insider Transactions at Semtech

In other news, CFO Mark Lin sold 970 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $150.41, for a total value of $145,897.70. Following the completion of the sale, the chief financial officer owned 34,896 shares in the company, valued at $5,248,707.36. This represents a 2.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Hong Q. Hou sold 2,000 shares of the firm's stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $133.00, for a total transaction of $266,000.00. Following the transaction, the chief executive officer directly owned 64,799 shares in the company, valued at $8,618,267. The trade was a 2.99% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 22,234 shares of company stock worth $3,203,091. 0.44% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of analysts have weighed in on SMTC shares. Roth Capital increased their price target on Semtech from $102.00 to $190.00 and gave the stock a "buy" rating in a report on Wednesday, May 27th. UBS Group boosted their price objective on Semtech from $165.00 to $225.00 and gave the company a "buy" rating in a research note on Wednesday, May 27th. Stifel Nicolaus upped their target price on Semtech from $157.00 to $188.00 and gave the company a "buy" rating in a research report on Wednesday, May 27th. Craig Hallum raised their target price on Semtech from $105.00 to $205.00 and gave the stock a "buy" rating in a research note on Wednesday, May 27th. Finally, Zacks Research upgraded Semtech from a "hold" rating to a "strong-buy" rating in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $189.07.

Semtech Stock Up 3.4%

SMTC stock opened at $139.42 on Friday. The firm has a market capitalization of $12.99 billion, a PE ratio of -357.49 and a beta of 2.35. The company has a quick ratio of 1.62, a current ratio of 2.37 and a debt-to-equity ratio of 0.86. Semtech Corporation has a twelve month low of $46.02 and a twelve month high of $177.35. The stock's 50 day moving average is $143.09 and its 200-day moving average is $113.67.

Semtech (NASDAQ:SMTC - Get Free Report) last announced its quarterly earnings results on Tuesday, May 26th. The semiconductor company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.45 by $0.06. Semtech had a positive return on equity of 18.31% and a negative net margin of 3.05%.The business had revenue of $291.02 million during the quarter, compared to the consensus estimate of $283.53 million. During the same quarter in the prior year, the company posted $0.38 earnings per share. Semtech's revenue was up 15.9% compared to the same quarter last year. Semtech has set its Q2 2027 guidance at 0.590-0.630 EPS. Sell-side analysts expect that Semtech Corporation will post 1.81 EPS for the current fiscal year.

About Semtech

Semtech Corporation is a leading supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms. The company's products address a broad range of applications in the Internet of Things (IoT), data center and telecom, industrial, home automation, automotive, and aerospace markets. Semtech's portfolio includes power management, signal integrity, protection devices, wireless and sensing technologies that enable smarter, more connected systems worldwide.

A core offering from Semtech is its LoRa® technology, a low-power, long-range wireless communication platform that has become a de facto standard for global IoT deployments.

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